Income Property Solution

128-Unit Apartment Investment 18.4% ARR Class-B Value Add In Fast Growing Chattanooga, TN Market

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We are pleased to present, a 128-unit apartment community conveniently located in the thriving market of Chattanooga, Tennessee. This is an attractive and spacious mix of studio and 1 bedroom apartments boasting 400+ and 600+ square feet, respectively (classic workforce housing). Through excellent relationships, our accepted offer greatly benefits from the current ownership's desire to move on after 30 years. That benefit is passed on to you in the form of a $200/month achievable rent increase. That's an estimated $4M in equity increase over a 5 year period!! And the property is 99% occupied!

 
 
We are scheduled to close on May 31st.

Here are some highlights:


Anticipated Returns
  • Average Rate of Return: 18.4%
  • Preferred Cash on Cash Return: (up to) 10%


Property Details
  • Unit Mix: 128 units (Studio and 1 Bedrooms)
  • Location: Chattanooga, TN
  • Purchase Price: $8,200,000
  • Capex: $1,295,613
  • Stabilized Value: ~ $12,098,000 (Y5)
  • Stabilized NOI: ~$785,912 (Y5)


Why we love this deal
  • More people moved to Tennessee in 2020 than any other state
  • Population is growing 0.48% annually, a full 10.07% since 2010
  • Median income is $55,366 with an 11.67% increase over three years
  • Just 4 miles from downtown Chattanooga, an up and coming metro
  • Solid brick, concrete construction; we love properties with solid bones
  • Rent growth shows 8.3% YoY effective rent increase
  • Large employers supporting solid pay: Erlanger Health Systems, Volkswagon of America, BlueCross BlueShield, Tennessee Valley Authority, McKee Foods Corp, Unum

We're looking forward to sharing this excellent deal with you. 

 
All the best,
Income Property Solution
 

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